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UPDATE 7-U.S. oil rises on surprisingly strong job growth, Ukraine

* US Feb nonfarm payrolls rise by 175,000, beating forecast

* Putin rebuffs Obama as Ukraine crisis escalates

* U.S. crude heads for eighth weekly rise

(Updates prices, adds analyst commentary)

NEW YORK, March 7 (Reuters) - U.S. oil rose more than $1 a barrel on Friday as tensions lingered in Ukraine and a report that U.S. job growth accelerated by more than expected in February offset a seasonal slowdown in demand for crude.

U.S. non-farm payrolls rose by 175,000 in February, more than the 149,000 that was expected and more than in January and December, data from the U.S. Labor Department showed on Friday.

The Ukraine crisis escalated as President Vladimir Putin rebuffed a warning from U.S. President Barack Obama over Moscow's military intervention in Crimea.

U.S. crude rose as much as $1.22 to $102.78 a barrel, and was trading $1.08 higher at $102.63 a barrel at 11:33 a.m. EST (1633 GMT). Global benchmark Brent rose 71 cents to $108.81 a barrel.

U.S. oil was on track for its eighth, albeit slight, week of gains in a row. Brent was on track for its second week of declines, despite ongoing supply disruptions in Libya.

Crude oil products rose in connection with U.S. oil. New York ultra-low sulfur diesel, or heating fuel, traded 2.5 cents higher at $3.0102 per gallon, and U.S. gasoline RBOB rose by about 2 cents to $2.9627 per gallon.

"The oil market has rallied today supported by a better than expected jobs report, and as a result, it is dragging up products with it," said Andy Lipow, president of Lipow Oil Associates in Houston.

Political tensions aside, analysts said the onset of spring in the northern hemisphere, bringing warmer weather and refinery maintenance, was likely to curb demand and limit price gains.

"Demand slumps ... before the bigger ramp-up to more economic activity in the later spring season, toward late April and into May," Rich Hastings of Global Hunter Securities said.

Oil jumped on Monday after military intervention by Russia, one of the world's top oil exporters, on the Crimean peninsula. But both Brent and U.S. oil gave back Monday's gains through the week.

Concerns over Ukraine increased again after Crimea's Moscow-backed parliament voted to join Russia on Thursday and scheduled a referendum on the split for March 16.

Before Putin and Obama spoke on Thursday, the U.S. president announced the first sanctions against Russia since the start of the crisis.

(Additional reporting by Alex Lawler in London and Jacob Gronholt-Pedersen in Singapore; Editing by William Hardy, Jane Baird, David Evans and Chris Reese)